Tag Archives: Unclaimed property

Our Unclaimed Property Group takes stock of the reprieve granted by the IRS in delaying new withholding and reporting requirements on IRAs remitted to states as unclaimed property.
Effective date delayed until January 2020
Logistical and practical compliance issues
A holiday treat for the financial services sector
Read the full advisory here. [...]Read more

Over the past two years, a series of sea-change developments in the unclaimed property compliance arena has impacted corporations in the U.S. As part of this series of articles produced by Duff & Phelps asking what's next, Kendall Houghton considers how investment assets will continue to generate audit disputes and litigation.
Read the articles here. [...]Read more

Many states have begun to treat IRAs as unclaimed property even before the owner can take a tax-free distribution. But now the IRS has ruled that escheatment is equivalent to a distribution and subject to federal income tax withholding and reporting requirements. Our Unclaimed Property Group dives into this dilemma for holders, owners, and states alike.
Revenue Ruling 2018-17 concludes that escheatment of an IRA is a designated distribution
Holders must honor federal tax withholding and reporting rules upon escheat
States are aggressively auditing IRAs
Potential negative impact on [...]Read more

Delaware’s unclaimed property law continues to face challenges in federal court. Our Unclaimed Property Group runs through the latest twist in the ongoing Marathon v. Cook saga at the Third Circuit.
Federal common law rule
Ripeness of the challenge
A dim view of Delaware’s aggressive audits
Read the full advisory here. [...]Read more

Delaware revised its unclaimed property overhaul legislation, and the Secretary of State issued its final VDA estimation regulations. Our Unclaimed Property Team explains what happened and what’s happening next.
Five-month extension for Department of Finance’s regulations
Holder-friendly updates to SB 13
New Department of State VDA estimation regulations
Read the advisory here. [...]Read more

This week, the Illinois General Assembly enacted budget legislation (SB 9) to much fanfare. Although most news stories will likely focus on the fact that the state has a budget for the first time in several years, the real breaking news in the unclaimed property world is that a version of the 2016 Revised Uniform Unclaimed Property Act ("RUUPA") was included as part of SB 9. A RUUPA bill (HB 2603) had previously been introduced and considered in the legislature but had been stagnant since March. However, Illinois' version of RUUPA is enacted and effective on January 1, 2018, seemingly [...]Read more

Now that Delaware's rewrite of its escheats laws is enshrined in Delaware law, holders will soon be faced with making some important decisions about audits and the VDA program. Our Unclaimed Property Group takes stock of what it means for holders going forward.
Read the full advisory here. [...]Read more

Exactly two weeks after introduction, Delaware’s major unclaimed property overhaul bill – SB 13 – passed both the Senate and the House of Delaware’s General Assembly on January 26. The bill is now on the desk of newly inaugurated Governor Carney and is awaiting signature. We have previously addressed some of the significant features of SB 13 here. To summarize, SB 13 represents a complete rewrite of the Delaware Escheats Law in reaction to the Temple-Inland decision and other recent unclaimed property developments. Although SB 13 is inspired by and based in part on the new 2016 [...]Read more